S.B. 315
- *SB315*
SENATE BILL NO. 315–SENATOR DALY
MARCH 10, 2025
____________
Referred to Committee on Growth and Infrastructure
SUMMARY—Authorizes the Department of Transportation to enter
into a progressive design-build contract for a certain
project. (BDR S-626)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to transportation; authorizing the Department of
Transportation to enter into a progressive design-build
contract for a certain project; and providing other matters
properly relating thereto.
Legislative Counsel’s Digest:
Under existing law, the Department of Transportation is authorized to contract 1
with a design-build team with respect to a project for the design and construction, 2
reconstruction or improvement of highways in certain circumstances. (NRS 3
408.3875-408.3888) Section 8 of this bill authorizes the Department to enter into 4
one or more progressive design-build contracts for the preconstruction, final design 5
and construction of the project consisting of improvements to Interstate 80 East 6
between Vista Boulevard in Sparks, Nevada and USA Parkway (State Route 439) 7
in Storey County, Nevada. Section 9 of this bill requires the Department to 8
advertise a solicitation for the project on its Internet website. Section 10 of this bill 9
provides for the issuance of a request for proposals in a one-step procurement 10
process, and a request for qualifications in a two-step procurement process. Section 11
10 prescribes the procedure for the review of submissions and the selection of an 12
applicant. Section 10 authorizes the Department to negotiate to enter into a contract 13
for preconstruction services with a progressive design-build team. 14
If the Department enters into a progressive design-build contract with a 15
progressive design-build team pursuant to section 10, section 11 of this bill 16
authorizes the Department, after the progressive design-build team has progressed 17
in the design for project, or any portion thereof, in a sufficient manner to determine 18
the cost of the final design and construction of the project, to enter into negotiations 19
with the progressive design-build team for a contract or a contract amendment to 20
complete final design and construction of the project, or any portion thereof. If such 21
negotiations fail, section 11 requires the Department to terminate negotiations and 22
authorizes the Department to: (1) enter into a separate contract with a qualified 23
person who was a member of the progressive design-build team to complete the 24
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design of the project, or portion thereof; or (2) undertake a new procurement under 25
a different procurement method. Section 12 of this bill prescribes the requirements 26
for a progressive design-build contract entered into pursuant to section 11. 27
Section 13 of the bill provides for the confidentiality of certain information and 28
documents concerning the project. Section 14 of this bill authorizes the Department 29
to employ a registered architect or licensed professional engineer as a consultant to 30
assist the Department in overseeing the preconstruction and construction of the 31
project. Sections 2-7 of this bill define relevant terms for this bill. 32
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. As used in sections 1 to 14, inclusive, of this act, 1
unless the context otherwise requires, the words and terms defined 2
in sections 2 to 7, inclusive, of this act have the meanings ascribed 3
to them in those sections. 4
Sec. 2. “Department” means the Department of 5
Transportation. 6
Sec. 3. “Preconstruction services” means services performed 7
before and leading up to construction. The term includes, without 8
limitation: 9
1. A portion or all of the preliminary, advanced or final design; 10
2. Assisting the Department with: 11
(a) The environmental review process; 12
(b) The process for obtaining permits; and 13
(c) Determining whether any scheduling or constructability 14
problems exist that would delay or impact construction or increase 15
the price of the project, or portions of the project; 16
3. Estimating the cost of the project, or portions of the project, 17
including, without limitation, labor, materials and equipment, and 18
determining whether the project, or portions of the project, can be 19
constructed within the budget of the Department; 20
4. Conducting due diligence and investigations of sites; and 21
5. Undertaking preliminary construction work approved by the 22
Department. 23
Sec. 4. “Prime contractor” means a person who: 24
1. Enters into one or more contracts to design and construct the 25
project, or a portion thereof; 26
2. Coordinates work performed on the project; 27
3. Uses its own workforce to perform all, or a portion, of the 28
design and construction of the project; and 29
4. Enters into one or more contracts for the services of a 30
subcontractor, supplier or independent contractor on the project or is 31
responsible for making payments to subcontractors, suppliers or 32
independent contractors on the project. 33
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Sec. 5. “Progressive design-build” means a procurement 1
method in which the Department selects a progressive design-build 2
team, in one or more steps, to enter into a contract with the 3
Department to perform preconstruction services that may progress 4
to the completion of the final design and construction of the project, 5
or a portion thereof, upon negotiation and approval by the 6
Department of a price and other terms and conditions. 7
Sec. 6. “Progressive design-build team” means a team that 8
consists of: 9
1. At least one person who is licensed as a general engineering 10
contractor or a general building contractor pursuant to chapter 624 11
of NRS. 12
2. At least one person who holds a certificate of registration to 13
practice architecture pursuant to chapter 623 of NRS or is licensed 14
as a professional engineer pursuant to chapter 625 of NRS. 15
Sec. 7. “Project” means the project for which the Department 16
is authorized to enter into a contract with a progressive design-build 17
team pursuant to section 8 of this act. 18
Sec. 8. Notwithstanding any other provision of law, the 19
Department may enter into one or more contracts for carrying out 20
the project consisting of improvements to Interstate 80 East between 21
Vista Boulevard in Sparks, Nevada, and USA Parkway (State Route 22
439) in Storey County, Nevada, by: 23
1. Selecting a progressive design-build team pursuant to 24
section 10 of this act; and 25
2. Entering into a single contract or separate contracts with the 26
progressive design-build team: 27
(a) For preconstruction services. 28
(b) Except as otherwise provided in section 11 of this act, for the 29
final design and construction of the project. 30
Sec. 9. 1. The Department shall advertise a solicitation for a 31
progressive design-build team for the project on the Internet website 32
of the Department. 33
2. A solicitation advertised pursuant to subsection 1 must 34
include, without limitation: 35
(a) A description of the project; 36
(b) An estimate of the cost to construct the project; 37
(c) A description of the work that the Department expects the 38
progressive design-build team to perform; 39
(d) The estimated date of completion of the construction work 40
on the project; 41
(e) The date by which proposals in a one-step procurement 42
process, or a statement of qualifications in a two-step procurement 43
process, must be submitted to the Department; 44
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(f) A statement setting forth the requirement that the prime 1
contractor be qualified to bid on a public work pursuant to 2
NRS 338.1379; 3
(g) A statement setting forth the requirement that the members 4
of the progressive design-build team possess the licenses and 5
certificates necessary to carry out their respective functions in this 6
State; 7
(h) A list of the factors and relative weight assigned to each 8
factor that the Department will use to evaluate the progressive 9
design-build teams who submit their proposals or qualifications for 10
the project; and 11
(i) Notice that a progressive design-build team desiring to 12
submit its proposal in a one-step procurement process, or its 13
statement of qualifications in a two-step procurement process, for 14
the project must include with its submission the information used by 15
the Department to evaluate the submissions of the applicants 16
pursuant to section 10 of this act. 17
Sec. 10. 1. The Department shall prepare and issue: 18
(a) In a one-step procurement process, a request for proposals 19
containing the elements described in subsections 2, 3 and 4; or 20
(b) In a two-step procurement process, a request for 21
qualifications containing the elements described in subsections 2 22
and 3 followed by a request for proposals containing the elements 23
described in subsection 4. 24
2. The eligibility requirements that must be demonstrated by 25
applicants include, without limitation: 26
(a) Evidence of the ability of the applicant to obtain necessary 27
bonding for the work required by the Department to be performed; 28
(b) Evidence of the ability of the applicant to obtain such 29
insurance as may be required by law; 30
(c) Evidence that the prime contractor is qualified to bid on a 31
public work pursuant to NRS 338.1379; 32
(d) Evidence that the members of the progressive design-build 33
team possess the licenses and certificates necessary to carry out their 34
functions in this State; and 35
(e) A statement of whether the applicant has been: 36
(1) Found liable for breach of contract with respect to a 37
previous project, other than a breach of contract for a legitimate 38
cause, during the 5 years immediately preceding the date on which 39
the solicitation was advertised pursuant to section 9 of this act; and 40
(2) Disqualified from being awarded a contract pursuant to 41
NRS 338.017, 338.13895, 338.1475 or 408.333. 42
3. The qualification requirements must set forth: 43
(a) The factors that the Department will use to qualify a 44
progressive design-build team, including, without limitation, the 45
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relative weight to be assigned to each factor. Such factors may 1
include, without limitation: 2
(1) The professional qualifications and experience of the 3
applicant; and 4
(2) The performance history of the members of the 5
progressive design-build team concerning other recent, similar 6
projects completed by those members, if any. 7
(b) The date by which statements of qualifications must be 8
submitted to the Department. 9
4. The request for proposals must set forth: 10
(a) The factors that the Department will use to select a 11
progressive design-build team, including, without limitation, the 12
relative weight to be assigned to each factor. Such factors may 13
include, without limitation: 14
(1) The professional qualifications and experience of the 15
applicant; 16
(2) The performance history of the members of the 17
progressive design-build team concerning other recent, similar 18
projects completed by those members, if any; 19
(3) The proposed plan to manage and carry out the 20
preconstruction phase of the project; 21
(4) The proposed plan to manage and carry out the final 22
design and construction phase of the project; 23
(5) The proposed conceptual and technical approach to the 24
project; 25
(6) The proposed approach to pricing and estimating the cost 26
of the final design and construction of the project; and 27
(7) Cost information. 28
(b) The date by which the proposals must be submitted to the 29
Department. 30
(c) The requirement that the proposal comply with the 31
provisions of NRS 338.141. 32
5. After the deadline for submission of a statement of 33
qualifications or proposals, the Department shall review the 34
submissions. The Department may evaluate submissions based 35
solely upon the information provided in the statement of 36
qualifications or proposals of each applicant. After review of the 37
submissions, the Department may interview some or all of the 38
applicants to further evaluate which applicant offers the best value 39
for the project. 40
6. For each request for qualifications or proposals, the 41
Department shall rank the applicants and generate a final list of 42
eligible applicants that participated in the request for qualifications 43
or proposals before entering into negotiations for one or more 44
contracts to which the request for qualifications or proposals 45
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applies. The ranking of the statements of qualifications or proposals 1
must assign a relative weight of 5 percent to the possession by the 2
applicant of a certificate of eligibility to receive a preference in 3
bidding on public works if the applicant submits a signed affidavit 4
that the applicant meets the requirements of subsection 1 of NRS 5
338.0117. If any federal statute or regulation precludes the granting 6
of federal assistance or reduces the amount of that assistance for a 7
particular public work because of the provisions of this subsection, 8
the provisions of this subsection do not apply insofar as their 9
application would preclude or reduce federal assistance. 10
7. If the Department issues a request for qualifications pursuant 11
to this section, the Department must select at least two but not more 12
than five applicants from the final list of eligible applicants who 13
submitted statements of qualifications and send the selected 14
applicants a request for proposals which includes the information 15
contained in subsection 4. 16
8. If applicants are required to submit cost information with 17
their proposals for the preconstruction phase of the project, the 18
evaluation must be on a pass or fail basis or based on not more than 19
20 percent of the scoring, as the Department deems appropriate. 20
9. If the submissions in response to a request for proposals 21
provide sufficient information to determine which eligible applicant 22
has offered the best value to the public, the Department may enter 23
into negotiations with that applicant concerning contract terms and 24
award a contract for preconstruction services to that applicant. Such 25
a contract must provide for the subsequent negotiations of terms 26
governing the construction phase of the project. If the Department is 27
unable to negotiate a satisfactory contract with that applicant for 28
preconstruction services, the Department may undertake 29
negotiations with a separate eligible applicant that participated in the 30
request for proposals process. 31
10. Upon receipt of the final rankings of applicants, the 32
Department shall enter into negotiations with the highest ranked 33
applicant determined pursuant to the provisions of this section. If the 34
Department is unable to negotiate a contract with the highest ranked 35
applicant determined by the Department to be fair and reasonable, 36
the Department may terminate or suspend negotiations with the 37
highest ranked applicant. The Department may undertake 38
negotiations with the next highest ranked applicant in sequence until 39
an agreement is reached or until a determination is made by the 40
Department to reject all applicants. 41
Sec. 11. 1. If the Department enters into a progressive 42
design-build contract with a progressive design-build team pursuant 43
to section 10 of this act, the Department may, after the progressive 44
design-build team has progressed in the design for project, or any 45
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portion thereof, in a sufficient manner to determine the cost of the 1
final design and construction of the project, enter into negotiations 2
with the progressive design-build team for a contract or a contract 3
amendment to complete final design and construction of the project, 4
or any portion thereof. 5
2. The progressive design-build team shall develop its price, on 6
a basis determined by the Department and using fully transparent, 7
open-book pricing, to complete the design and construction of the 8
project, or portion thereof. 9
3. If the Department is unable to negotiate a satisfactory 10
contract or contract amendment with the progressive design-build 11
team to complete the final design and construction of the project, or 12
portion thereof, the Department shall terminate negotiations with 13
that progressive design-build team and: 14
(a) May enter into a separate contract with a qualified person 15
who was a member of the progressive design-build team to 16
complete the design of the project, or portion thereof; or 17
(b) May undertake a new procurement and award the contract 18
for the project pursuant to the provisions of NRS 408.327 to 19
408.387, inclusive, or 408.3875 to 408.3888, inclusive. If a new 20
procurement is initiated, the Department may elect not to accept a 21
bid to construct the project from the progressive design-build team 22
with whom the Department entered into a progressive design-build 23
contract for preconstruction services. 24
Sec. 12. 1. A progressive design-build contract or contract 25
amendment entered into by the Department with a progressive 26
design-build team pursuant to section 11 of this act must: 27
(a) Comply with the provisions of NRS 338.013 to 338.090, 28
inclusive; and 29
(b) Specify: 30
(1) An amount that is the maximum amount that the 31
Department will pay for the performance of all the work required by 32
the contract, excluding any amount related to costs that may be 33
incurred as a result of unexpected conditions or occurrences or 34
change orders as authorized by the contract; 35
(2) An amount that is the maximum amount that the 36
Department will pay for the performance of the professional 37
services required by the contract; and 38
(3) A date or duration by which performance of the work 39
required by the contract must be completed. 40
2. The Department, the progressive design-build team, any 41
contractor who is awarded a contract or enters into an agreement to 42
perform work on the project and any subcontractor who performs 43
work on the project shall comply with the provisions of 44
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NRS 338.013 to 338.090, inclusive, in the same manner as if the 1
Department had undertaken the project or had awarded the contract. 2
3. A progressive design-build team to whom a progressive 3
design-build contract is awarded pursuant to section 11 of this act 4
shall: 5
(a) Assume overall responsibility for ensuring that the design 6
and construction of the project is completed in a satisfactory 7
manner; and 8
(b) Use the workforce of the prime contractor on the progressive 9
design-build team to construct at least 15 percent of the project. 10
Sec. 13. 1. Any document or other information submitted to 11
the Department pursuant to section 10 of this act by a person who is 12
a member of a progressive design-build team is confidential and 13
may not be disclosed until notice of intent to award the progressive 14
design-build contract is issued. 15
2. Any document or other information submitted to the 16
Department during the negotiations of the contract or contract 17
amendment for the final design and construction of the project 18
pursuant to section 11 of this act by a person who is a member of a 19
progressive design-build team is confidential and may not be 20
disclosed until execution of the contract or contract amendment. 21
3. The Department shall not release to a third party, or 22
otherwise make public, financial or proprietary information 23
submitted by a progressive design-build team. 24
4. The disclosure of any document or other information after 25
the time periods set forth in subsection 1 or 2, as applicable, are 26
subject to the protections regarding confidentiality set forth in 27
chapter 239 of NRS. 28
5. As used in this section, “document or other information”: 29
(a) Means any submittal by a person who is a member of a 30
progressive design-build team to the Department in response to a 31
progressive design-build project initiated pursuant to section 10 of 32
this act. 33
(b) Includes, without limitation, any or all of the following: 34
(1) A proposal made pursuant to section 10 of this act. 35
(2) A statement that the applicant satisfies the requirements 36
of subsection 2 of section 10 of this act. 37
(3) Any information provided to the Department during 38
negotiation of a contract or contract amendment for the final design 39
and construction of the project pursuant to section 11 of this act. 40
Sec. 14. The Department may employ a person who holds a 41
certificate of registration to practice architecture pursuant to chapter 42
623 of NRS or is licensed as a professional engineer pursuant to 43
chapter 625 of NRS as a consultant to assist the Department in 44
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overseeing the preconstruction and construction of the project. An 1
architect or engineer so employed shall not: 2
1. Perform any of the construction, reconstruction or 3
improvement work on the project; or 4
2. Assume overall responsibility for ensuring that the 5
construction of the project is completed in a satisfactory manner. 6
Sec. 15. This act becomes effective on July 1, 2025. 7
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